MN317
Dryer sheet aficionado
- Joined
- Mar 3, 2013
- Messages
- 26
An interesting quote from a article about the succession plan at Berkshire Hathaway-
Here are Warren Buffett's exact words from the 2014 Berkshire Hathaway annual letter on why he wants his son Howard to be a non-executive chairman at Berkshire:
"To further ensure continuation of our culture, I have suggested that my son, Howard, succeed me as a non-executive chairman. My only reason for this wish is to make change easier if the wrong CEO should ever be employed and there occurs a need for the chairman to move forcefully. I can assure you that this problem has a very low probability of arising at Berkshire -- likely as low as at any public company. In my service on the boards of 19 public companies, however, I've seen how hard it is to replace a mediocre CEO if that person is also chairman. (The deed usually gets done, but almost always very late.)
If elected, Howard will receive no pay and will spend no time at the job other than that required of all directors. He will simply be a safety valve to whom any director can go if he or she has concerns about the CEO and wishes to learn if other directors are expressing doubts as well. Should multiple directors be apprehensive, Howard's chairmanship will allow the matter to be promptly and properly addressed."
See the entire article here:
Why Warren Buffett's Son Isn't Berkshire's Heir Apparent - DailyFinance
Here are Warren Buffett's exact words from the 2014 Berkshire Hathaway annual letter on why he wants his son Howard to be a non-executive chairman at Berkshire:
"To further ensure continuation of our culture, I have suggested that my son, Howard, succeed me as a non-executive chairman. My only reason for this wish is to make change easier if the wrong CEO should ever be employed and there occurs a need for the chairman to move forcefully. I can assure you that this problem has a very low probability of arising at Berkshire -- likely as low as at any public company. In my service on the boards of 19 public companies, however, I've seen how hard it is to replace a mediocre CEO if that person is also chairman. (The deed usually gets done, but almost always very late.)
If elected, Howard will receive no pay and will spend no time at the job other than that required of all directors. He will simply be a safety valve to whom any director can go if he or she has concerns about the CEO and wishes to learn if other directors are expressing doubts as well. Should multiple directors be apprehensive, Howard's chairmanship will allow the matter to be promptly and properly addressed."
See the entire article here:
Why Warren Buffett's Son Isn't Berkshire's Heir Apparent - DailyFinance
